Register A Company in Mongolia by 3E Accounting
Setting up a company in Mongolia is bureaucratic and paper-based although reforms designed to improve the process are in the pipeline. The process to register a company in Mongolia is fairly simple and the laws regulating them are pretty flexible too.
Register A Company in Mongolia
There are different types of corporations that can be registered in Mongolia. The first is a limited liability company (LLC). This can be done with just one shareholder and one director. Another option is a joint-stock company (JSC). This will require at least 2 shareholders, who may be a non-resident foreign individual. A board of directors, comprising of at least 9 members, must also be appointed. For both the LLC and the JSC, shareholder(s) may be a non-resident foreign individual. Another note to take of is for shareholder(s) holding more than 25% stake, will be required to contribute US$100,000 to the company. This is an alternative if the Client plans to issue shares to the public.
However, it is possible for a JSC to operate as a private entity and not list on the stock exchange. In the event where there is no intention to carry out income-generating activities in Mongolia, there is the option of registering a representative office. This will require the appointment of an authorized agent who will act on behalf of the entity in Mongolia. The time frame for incorporation is 6 to 8 weeks. A period of 4 weeks is required to open a company bank account. The corporate tax payable in Mongolia is 25% is required of an LLC and JSC. The minimum capital of US$100,000 is needed for every shareholder with a 25% stake in the company.
Why Invest in Mongolia?
Situated between Russia and China, Mongolia offers domestically a growing market and tremendous export opportunities for foreign investors in a number of sectors. In light of this, Mongolia can be seen as a huge Launchpad for investors to enter China’s or Russia’s market as well as a good gateway to other markets. Mongolia is in a unique competitive position in certain sectors due to the growing interest in the global market in ecologically pure products. Food processing, agriculture, ecotourism are among the few. On a different note, a number of “traditional” sectors also possess strong competitive features. These include oil exploration, coal production, gold mining and refining, etc. Furthermore, with a well-educated population.
Mongolia is a country that is open to new products, services, and ideas. Flexible regulations in regards to foreign ownership, possible and low utility costs in the region are some of the key factors that attract foreign investors and opportunities. In regards to human resources, Mongolia is a young nation with a relatively healthy and well-educated population.
Due to its fast-growing economy, Mongolia is an ideal country to start a business. There are some flaws such as language barriers and inconsistent application of laws and regulations. However, the opportunity that Mongolia presents is far greater than these irregularities. The process to register a company in Mongolia is fairly simple when broken down but it can also be quite tedious and complicated. We provide these services to simplify your integration into the economy in Mongolia, should you require any assistance or services, contact us today to get more details.